Important Business News from Stubbs Alderton & Markiles, LLP – New California “Do Not Track” Law Goes into Effect January 1, 2014

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New California “Do Not Track” Law Goes into Effect January 1, 2014

Beginning January 1, 2014, AB 370, an amendment to the California Online Privacy Protection Act (CalOPPA), will require owners of commercial websites to disclose how they respond to “do not track” signals and to inform users of these websites if their online activities are being tracked. “Do Not Track” technology enables a web browser to express the user’s preference not to be tracked by websites. When this feature is activated, a user’s browser signals to advertising networks and other websites the user’s choice to opt out of being tracked.

This new law does not make it illegal to ignore “do not track” settings on web browsers. Instead, it requires each business to disclose whether or not they ignore these settings. The law also requires each business to disclose whether its website tracks over time and across other websites the online activity of consumers residing in California who visit the website or if the business allows third parties to track the website’s visitors. Failure to comply with the new law could lead to significant fines enforced by the California Attorney General.

Here are some suggested business practices for adapting to the new law:

Conduct an audit of your website. Determine how your website responds to “do not track” browser settings and signals and whether your business permits third parties to conduct tracking activities on your website.

Update your website’s privacy statement. California business owners should update their website’s privacy statement by January 1, 2014 to include disclosures about how the website responds to “do not track” signals.

How Stubbs Alderton & Markiles, LLP can help. We are a business law firm with particular expertise in privacy and Internet law. Our attorneys have extensive experience in developing effective and legally compliant privacy statements for websites. Please contact us directly if you would like assistance in updating your website’s privacy statement to comply with the new “Do Not Track” law.